Predictions made a few years ago on how much money Tourism Wells Gray would make from a hotel tax were overly optimistic, according to TWG manager Brad Bradbury.
As a result, the tourism marketing has had to scale back its plans and seek other sources of funding, Bradbury reported to Clearwater council on Jan. 22.
The earlier predictions on how much the hotel tax would raise were based on an assumed average annual occupancy rate of 80 per cent, he said. In fact, the actual average year round occupancy rate is closer to 28 per cent for those properties that remain open.
That meant the budgeted revenue of $112,000 was totally unrealistic.
During 2012 the hotel tax raised only $63,000, about $50,000 short of the original estimate.
Despite the financial difficulties, TWG had a busy and productive year, he said.
A wide variety of marketing was carried out, trade shows participated in, and reports and plans completed.
External funding was obtained through Wells Gray Community Forest, Thompson-Okanagan Tourism Association and the provincial government.
Bridging funding from District of Clearwater and Wells Gray Country (TNRD Area A) has not been touched so far, he said.
